Indian Commodity Exchange to file IPO

Multi Commodity Exchange of India (MCX), country's largest commodity Exchange , will open its initial public offering (IPO) of 6,427,000 equity shares (dilution of 12.6% post issue) for subscription during February 22-24, 2012.

The issue consists of an offer for sale by Financial Technologies (India) Limited, State Bank of India, GLG Financials Fund, Alexandra Mauritius Limited, Corporation Bank, ICICI Lombard General Insurance Company Limited and Bank of Baroda. It means that the company will not get any money through this IPO.

The offer comprises a net offer of 6,177,378 equity shares to the public and a reservation of up to 250,000 equity shares for the eligible employees.

Promoter Financial Technologies will reduce its stake in MCX to 26% from 31.18% through the offer. SBI will cut its holding to 1.04% to 5.18%, Corporation Bank to 3% from 3.48% and Bank of Baroda to 0.82% from 1.03%.

GLG Financials Fund will offload its stake to 0.38% from 1.92% and Alexandra Mauritius Limited to 0.19% from 0.96%.

Rating agency CRISIL assigned a grade 5/5 to the IPO, indicating strong fundamentals.

MCX offers trading in FX futures with an average daily trade volume of around $8-10 billion.

Forexmagnates team covered the Indian markets in the Q2 2011 quarterly report.